BOK pours US$1.4 bln into brokerages, asset managers

(ATTN: ADDS more details and background from para 2)
SEOUL, Oct. 24 (Yonhap) -- South Korea's central bank said Friday it provided 2 trillion won (US$1.4 billion) to local securities houses and asset managers through repurchase agreement deals in a bid to help ease their cash crunches.

The Bank of Korea (BOK) said it bought 28-day repurchase agreement deals from
Korea Securities Finance Corp., which provides financing to securities-related
institutions. The agency in turn released the money to cash-strapped securities
houses and asset managers.
Currently, the BOK's repurchase agreement deals cover Treasuries, securities
whose repayment is guaranteed by the government and currency stabilization bonds.

"The BOK plans to provide more liquidity to the market if deemed necessary," it
added.
The move came one day after the country's financial watchdog said South Korea is
considering measures to provide liquidity to securities firms, asset managers and
other institutional investors in a bid to help stabilize the local stock market.
South Korea's benchmark Korea Composite Stock Price Index (KOSPI) plummeted 10.57
percent to 938.75, falling below the psychologically important 1,000-point mark
for the first time in 40 months. The Korean currency closed at 1,424 won to the
greenback, down 15.2 won from Thursday, hitting an over 10-year low.
sooyeon@yna.co.kr
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